NextDecade launches unit to develop CCS project at Rio Grande LNG

US liquefaction plant developer NextDecade said it has launched a new unit to develop a carbon capture and storage project at its proposed Rio Grande LNG export plant in Texas.

NEXT Carbon Solutions’ CCS project could reduce permitted CO2 emissions at Rio Grande LNG by more than 90 percent without major design changes to the facility, according to NextDecade.

As a result, Rio Grande could become the “greenest LNG project in the world,” it said.

One of the largest CCS projects in North America would enable the capture and permanent geologic storage of more than five million tonnes of CO2 per year, NextDecade said.

“NEXT Carbon Solutions believes that developing the CCS project at the same time as the Rio Grande project will result in 60-80 percent less capital costs than retrofitting an operating LNG facility,” it said.

Moreover, all-in costs of the CCS project, including capital and operating expenses, interest, transportation, and permanent storage, would reach $63 to $74 per metric tonne of CO2 before any benefit from Section 45Q tax credits, it said.

Including the full benefit of Section 45Q tax credits, the breakeven cost of adding CCS to Rio Grande LNG is expected to be $13 to $24 per metric tonne of CO2 or $0.05 to $0.09 per MMBtu on an LNG basis, NextDecade said.

Raising cash

The US firm revealed in a separate statement it has agreed to sell $24.5 million of Series C Preferred Stock.

NextDecade issued the stock in a private placement to funds managed by York Capital Management, Avenue Capital Group, and Bardin Hill Investment Partners, it said.

Furthermore, the firm added it aims to use proceeds to finalize commercial agreements needed to achieve a final investment decision on Rio Grande LNG in 2021 but also on the new CCS project.

Announcing a “pricing refresh” deal with engineering giant Bechtel earlier this month, NextDecade said it anticipates achieving a final decision on a “minimum of two trains” at Rio Grande LNG this year.

The full-scope of the Rio Grande project includes five trains for a total capacity of 27 million tonnes per year.

- Advertisements -

Most Popular

Venture Global seeks more time to complete Calcasieu Pass LNG terminal

US LNG exporter Venture Global LNG has requested more time from the US FERC to complete the commissioning of...

First Gen seeks new LNG cargo for Batangas FSRU terminal

Power producer First Gen is seeking one spot LNG cargo for its FSRU-based import terminal in Batangas, Philippines. The firm...

Equinor seals 15-year LNG supply deal with India’s Deepak Fertilisers

Norway's Equinor and India's Deepak Fertilisers have signed a 15-year deal for supplies of liquefied natural gas (LNG) with...

More News Like This

NextDecade enters loan as it works on FID for fourth Rio Grande LNG train

US LNG firm NextDecade has entered into a credit agreement as it works to take a final investment decision...

ABB bags Rio Grande LNG gig

Swiss engineering group ABB has won a contract from Bechtel to provide automation and other solutions for NextDecade’s Rio...

NextDecade plans to take FID on fourth Rio Grande LNG train in H2 2024

US LNG firm NextDecade is planning to take a final investment decision to build the fourth liquefaction train at...

NextDecade officially kicks off Rio Grande LNG work

US LNG firm NextDecade has officially started building the first phase of its Rio Grande LNG export project in...